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Aim of the study: Pastoral management in Europe is an important element in protecting biodiversity and the landscape. Shepherding stimulates the development of the market of traditional and regional products, handicrafts and services. Pastoral farming in Europe is an important element of biodiversity and landscape protection. Shepherding stimulates the development of the market for traditional, regional products, handicrafts and services. For many years, wool was an important product obtained in mountain areas from local sheep breeds, now treated as a waste product. The aim of the study is to describe farming methods in mountain areas, indicating innovative possibilities of using sheep wool. Material and methods: The material consisted of literature studies and own research on management in mountain areas. Own research and literature analyzes have shown that, due to its properties, wool obtained from mountain sheep can be used as a natural fiber in a biodegradable composite and constitute an alternative to plastic packaging. The introduction of natural fibers in the fertilizer composite can improve not only soil fertility but also bring economic effects, such as the use of wool of Polish mountain sheep as part of the circular economy. Results and conclusions: Summarize, the search for alternative directions for the use of sheep wool is of strategic importance for maintaining and even increasing the sheep population in Poland and in other European Union countries. Occurring soil droughts in the summer period affect the reduction of plant yields, and for this reason, the application of biodegradable biocomposite to the soil will not have a negative impact on the environment of mountain pastures and meadows